Peak Oil on Bloomberg News

[theheretic]

The story title is:
Oil Prices Will `Pierce' $147, Schoenberger Says

The link leads to a video of a couple different guys being interviewed on oil price trends. One says it will pass $147 because we can't live without it. Another says we're already too pricey and says collapse in economic activity will cut demand, dropping the price. I think they

Comments

[ext_1063766]

they're no longer kidding themselves ... that they can realistically "profit" from this.

If you want to profit, build colossal, complex refineries that can handle the heaviest, most sour crude.
http://www.guardian.co.uk/business/2012/feb/27/oil-refineries-close-uk-europe-essar-energy

"There is some sort of structural change in the refining industry globally," said Nayyar. "Refineries that were small-sized or low-complexity are being replaced by large, complex refineries mostly built in the Asia-Pacific region … Those refineries that are not economically sustainable or of low complexity will find it much harder to survive in this market."

[theheretic]

The thing about building a refinery, is most countries have lots of fees and fines and inspections so its a huge legal hassle. There's also the bribes to senators/parliament depending on nation involved. The reason the USA exports gasoline is some of the nations we buy oil from don't have their own refineries and this gets us some exchange advantages. The other big problem with refineries is that the stainless steel used in the pipes, the only real option mind you, corrodes in the presence of the Sulfuric Acid that results from separating out the Sulfur from the Heavy Sour Crude they're selling these days. It costs more, its more dangerous, its more prone to leaking out and causing deadly accidents, so nobody wants a refinery running the stuff nearby, and nobody wants to deal with the hassles if they can possibly avoid it